Compliance Timeline
Upcoming regulatory effective dates and compliance deadlines
January 2026
Administrative Penalties for Tax and Invoice Violations in Vietnam
Decree 310/2025/ND-CP, effective January 16, 2026, replaces Decree 125/2020/ND-CP and introduces significant changes to administrative penalties for tax and invoice violations in Vietnam. The scope of violations has expanded to include land use fees, land and water surface rental fees, fees for granting mineral and water resource exploitation rights, after-tax profits of state-owned enterprises, and dividends from state capital in joint-stock and limited liability companies. For the first time, the decree recognizes force majeure exemptions (natural disasters, epidemics, fires, wars) from penalties if taxpayers demonstrate they took all preventive measures. Crucially, penalty liability now extends to third parties: authorized agents and organizations/individuals performing tax obligations on behalf of taxpayers will be held directly responsible for violations. This has major implications for businesses outsourcing tax compliance and accounting services. Invoice-related penalties are now structured in detailed tiers based on the number of invoices and their purpose (sales versus promotions/gifts/internal use). Fines range from VND 500,000 to VND 80 million depending on violation severity. Businesses must review their invoicing processes, especially for e-invoices, and ensure authorized representatives maintain full compliance to avoid serious legal and financial risks under this strengthened enforcement framework.
Driving Vietnam's Private Sector Growth: Core Incentives Introduced by Decree 20/2026
Decree 20/2026/ND-CP, effective January 15, 2026, provides detailed regulations for implementing Resolution 198/2025/QH15 on special mechanisms and policies to promote private sector development in Vietnam. Applicable to enterprises, household businesses, individual business operators, and other relevant organizations, this decree establishes a comprehensive framework of targeted incentives covering tax relief, access to land and business premises, support for innovation and digital transformation, and capacity-building measures. Key tax incentives include: full corporate income tax (CIT) exemption for three years from the first Enterprise Registration Certificate for small and medium-sized enterprises (SMEs); full CIT exemption for two years followed by 50% reduction for four years for innovative startup enterprises and supporting organizations; full personal income tax (PIT) exemption for two years followed by 50% reduction for four years on salaries for experts and scientists working at innovative startups, R&D centers, and innovation centers; and PIT/CIT exemption on income from capital transfers invested in innovative startups. The decree also establishes mechanisms for land and premises access, including infrastructure investment support, land fund allocation within industrial parks and technology incubators for priority enterprises, rental discounts, leasing of public property, and reimbursement mechanisms for infrastructure developers who provide discounted subleases to supported enterprises. Additionally, it provides support for research and development, science and technology application, digital transformation, and human resource development through R&D funding programs, tax deductions, digital platform support, and training initiatives. These measures collectively form a robust policy framework designed to translate Vietnam's private sector development strategy into actionable, enterprise-level benefits.